A number of sources are buzzing about Microsoft’s progress on its next console, which has become known as the 720 (at least for the time being). Multiple sources say that Microsoft is targeting a fall/holiday release in 2013 as the time frame for its arrival.

Whispers suggest that a number of developers already have development systems that feature the new technology that will be a part of the new system. Of course, these developers and publishers are denying that they have this new technology in their possession, but if Microsoft is targeting for 2013, developers need to start getting new engines moved over to the new platform.

Speaking of engines, from the shadows we are hearing suggestions that Lionhead is working on Fable Next, which will be a launch title for the system; and Epic is hard at work getting the 4th evolution of its Unreal Engine ready for the platform, as well. It is suspected that a number of other high profile developers are also working on getting their engines ready for the new platform.

Of course, Microsoft is saying nothing and has noted (as they always do) that they don’t comment on rumors. If a fall or holiday 2013 release is the target, sources tell us that we should expect that Microsoft will take the wraps off the 720 at E3 in June 2013. We will just have to see how the timeline evolves at this point; but don’t look for Microsoft to talk about it, as they will continue to promote the Xbox 360 up till the last second of the announcement of the 720.